The Dangote Group has strengthened its strategic partnership with the Africa Finance Corporation (AFC) through the signing of a $600 million loan agreement aimed at expanding fertiliser production capacity across Nigeria and Africa.
The company disclosed this in a statement on Monday, noting that the loan facility was granted to GreenView Fertiliser Corporation, the Dangote Fertiliser Holding Company.
According to the statement, the financing will partly support the expansion of the Dangote Fertiliser Plant in Nigeria and the development of a new fertiliser facility in Ethiopia.
The investment forms part of the Dangote Group’s broader $7 billion fertiliser expansion programme designed to significantly increase production capacity and strengthen food security across the continent.
Under the programme, Dangote Fertiliser’s production capacity in Nigeria is expected to rise from three million metric tonnes per annum (MTPA) to nine million MTPA. The initiative will also support the construction of a new three million MTPA urea fertiliser plant in Ethiopia.
The company said the expansion project is expected to substantially increase Africa’s fertiliser production capacity, improve agricultural productivity and reduce the continent’s reliance on imported fertilisers.
“The financing underscores AFC’s continued confidence in Dangote Group’s vision to drive industrial growth and agricultural transformation through large-scale investments in critical infrastructure,” the statement said.
The facility will be deployed towards expanding the Dangote Fertiliser Plant located in Ibeju-Lekki, Lagos State, one of the largest granulated urea fertiliser complexes in the world.
The company stated that the expansion would significantly increase production output, improve supply chain efficiency and ensure a steady supply of high-quality fertilisers to farmers across Africa.
It added that the project would help reduce fertiliser import dependence, stabilise market prices and improve agricultural yields, thereby strengthening food security across the continent.
Speaking on the development, President of Dangote Group, Aliko Dangote, said the expansion programme is expected to generate more than $4 billion annually in export earnings within the next three years.
“By the next three years, we’ll be able to have an export of over $4 billion worth of urea fertiliser, and I think it is a big contribution to the foreign exchange income of the country,” Dangote said.
He added that the company’s ambition to grow into a $100 billion enterprise by 2030 would be achieved through collaboration with strategic partners, including AFC and other leading African institutions.
Commenting on the transaction, President and Chief Executive Officer of AFC, Samaila Zubairu, described the deal as a demonstration of the corporation’s capital recycling strategy.
“This transaction demonstrates AFC’s capital recycling model in action. Following the successful repayment of our earlier investment in Dangote Industries Limited, we are redeploying and doubling that capital into Dangote Group’s next phase of growth,” Zubairu said.
He noted that AFC’s support for the expansion reflects confidence in Dangote Group’s capacity to drive industrial growth, strengthen food security and create sustainable economic value across Africa.
The Dangote Fertiliser Plant currently plays a key role in meeting domestic fertiliser demand while supplying international markets and generating foreign exchange earnings for Nigeria.
With the planned expansion, the company aims to strengthen its position as a leading player in the global fertiliser industry while contributing to agricultural development and economic growth across the continent.
